The Department of Higher Education and Training has announced that it has created a R3.8 billion fund within the National Student Financial Aid Scheme (Nsfas) aimed at assisting the country’s “missing middle” students. <\/p>\n\n\n\n
According to an announcement made by the department’s minister, Blade Nzimande, the new Comprehensive Student Funding Model introduces measures to support a wider-ranging category of students – including those who are currently not supported by the Nsfas bursary and funding policy.<\/p>\n\n\n\n
This new category is for students whose families have a total income of more than R350,000, but not more than R600,000 per annum. <\/p>\n\n\n\n
Previously, Nsfas funding was only available to households falling in the low-income category (>R350,000 p\/a). Between 2019 and 2022, Nsfas disbursed R123 billion worth of loans for 2,918,624 beneficiaries. <\/p>\n\n\n\n
According to the most recently conducted National Income Dynamic Study, it is estimated that 85.6% of all households fall in the low-income category, and 11% of households fall into the missing middle category. <\/p>\n\n\n\n
This newly-introduced category by Nsfas “will ensure that the missing middle students will now be able to access financial support from government in a form of a loan to pursue their studies,” said Nzimande.<\/p>\n\n\n\n
The Comprehensive Student Funding Model is said to be implemented in phases. The first and current phase (2024 – 2025) allocates a total of R3.8 billion. R1.5 billion is from the National Skills Fund (NSF), and R2.3 billion is from the Sector Education and Training Authorities (Setas). <\/p>\n\n\n\n
“This amount will fund 47% of the missing middle students, that is, 31,884 of the estimated 68,446 missing middle,” said Nzimande. <\/p>\n\n\n\n
Phase two (2025 – 2034) of the funding model seeks to increase government funding contribution from R31.6 billion to R42.1 billion over ten years – approximately equating to an increase from R3.1 billion to R4.2 billion annually.<\/p>\n\n\n\n
In order to qualify for the government loan, certain requirements and conditions have been announced:<\/p>\n\n\n\n
Conditionalities:<\/p>\n\n\n\n